2024-06-20 19:43:03
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Mexico’s President-elect Claudia Sheinbaum has chosen an economy minister seen as business-friendly to join her Cabinet in an attempt to appease investors rattled by her landslide election victory earlier this month.
During a brief event on Thursday, Sheinbaum named six cabinet members, highlighting their expertise or experience relevant to their positions. Marcelo Ebrard, a former foreign minister and Sheinbaum’s main rival for the presidential nomination earlier this year, was named economy minister, responsible for promoting industry, trade and attracting foreign investment.
During Donald Trump’s presidency, Ebrard represented Mexico in negotiations on policies to stem the flow of migrants and on revamping the North American Free Trade Agreement.
“We live in a more protectionist, in some ways more unstable world and our task is to navigate these rough waters,” Ebrard said Tuesday at an event at a museum in the capital’s historic center. “Mexico has many advantages in the world today.”
Sheinbaum has yet to announce his picks for other key cabinet posts, including the interior, security and energy departments.
Mexico is seen as one of the potential beneficiaries of rising trade tensions between the United States and China as companies seek to build factories near the U.S. Foreign investment has been steady but not booming, and it is up to Ebrard to seize more opportunities.
The situation will be further complicated by a huge budget deficit, a government-led energy policy and a Sheinbaum-backed judicial reform plan that would fire about 1,600 judges and replace them with elected ones.
The peso appreciated 0.6% against the dollar after the cabinet announcement. But it is still more than 7% weaker than before the election due to concerns that the proposed and other reforms will remove key checks and balances.
Sheinbaum chose to continue this policy, confirming that Rogerio Ramírez de la O will continue as Finance Minister. Foreign Minister Alicia Bárcena will also join the new cabinet in charge of the Ministry of Environment.
But throughout the campaign, the former climate scholar and her team have also highlighted some of the differences in style and background between her and her predecessor, Andres Manuel Lopez Obrador.
The ruling Morena party coalition is just two Senate seats away from an outright majority in both chambers in September, which would allow them to push through a series of radical reforms proposed by López Obrador.
Sheinbaum pledged during his campaign to build a “second tier” for the political movement of his mentor, López Obrador, and investors and analysts are trying to decipher how much influence he will have in the new government.
She has named close allies such as Ernestina Godoy, a former Mexico City state prosecutor, as her chief legal counsel. Juan Ramón de la Fuente, a former diplomat who led Sheinbaum’s transition team, will be the next foreign minister.
López Obrador has given cabinet members limited wiggle room. In contrast, political experts expect Sheinbaum to hand over more control to her team.
“Their profile matches the position. It looks like we will have people with a voice and influence, unlike the current government,” said political analyst Blanca Heredia.
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